A $50-million fund launched by Desjardins Group will be helping social housing non-profits in Quebec to buy and build sustainable, low-carbon housing.

Via the Amplifier fund, Desjardins Capital is managing resources provided by Quebec non-profits, foundations and the provincial government.

The Desjardins Affordable Housing Initiative, a partnership between the Levis-based financial co-operative and the Quebec government to build affordable housing, will recommend projects for funding to Desjardins Capital.

Non-profits will be provided funding to support the construction or acquisition of affordable housing that surpasses national standards for energy efficiency and exclude fossil fuel use.

"This project shows that affordability and sustainability can be combined, and that housing and climate change can be tackled at once," Jane Rabinowicz, the president and CEO of the McConnell Foundation, which contributed to Amplifier, said in the announcement.

Housing non-profits need more financial assistance than for-profit groups, Yannick Laviolette, senior director of affordable housing at Desjardins, said in an interview with Sustainable Biz Canada. Thus, Amplifier allows Desjardins to continue its efforts in the ongoing Affordable Housing Initiative.

Building efficiency central to Amplifier

Desjardins will select non-profits that are developing projects in line with its criteria, he said. Those include:

• exceeding energy efficiency requirements set under the 2015 National Energy Code of Canada for Buildings by 35 per cent or more;
• excluding fossil fuel use;
• rents that meet affordability standards set by the Quebec Affordable Housing Program; and
• having accessible units adapted to the needs of families.

Building envelope improvements such as energy efficient windows and hot water systems will likely be the focus of the Amplifier investments, Laviolette said. 

The disbursements per project will start from $500,000 and likely not exceed $5 million, he added.

As investments, it will be critical to “make a small return” for the foundations and “at least beat inflation,” Laviolette explained. Upon the end of the 15-year commitments from the foundations, Desjardins will reimburse the initial capital plus a return on investment when the buildings are refinanced.

Desjardins’ sustainability efforts

The financial co-operative has committed to being a net-zero business by 2040 across its operations (buildings, business travel, supply chain) and financial activities (insurers’ investments, lending) in the energy, real estate and transportation sectors.

A major initiative by the company is its partnership with Export Development Canada to launch a sustainable financing offering for medium and large export companies. Desjardins is providing up to $1 billion over three years for projects that cut greenhouse gas emissions, such as green buildings, renewable energy, sustainable food production and circular economy innovations.

To encourage homebuyers to go green, Desjardins pitches a cash-back incentive. When applying for a mortgage to buy a new home from a builder or developer which meets recognized environmental standards LEED Canada, Energy Star or Novoclimat, Desjardins will provide up to $2,000.

In a step to better understand its operational emissions, Desjardins has an internal program to optimize and monitor the energy consumption of its buildings. Over 200 energy audits have been performed since 2018, Desjardins stated in a document about its 2024 highlights.

At Complexe Desjardins, its downtown Montreal building, the co-operative replaced 6,600 windows to boost energy efficiency.

Since 2020, Desjardins pledged over $6 billion for the energy transition and renewable energy projects, accounting for 69 per cent of its energy portfolio as of Dec. 31, 2024. The company also surpassed its target of assembling a $2-billion investment portfolio for renewable energy by 2025.

Desjardins’ absolute greenhouse gas emissions have not changed much since 2020 because its portfolio grew by 38 per cent from 2020 to 2024, according to its 2024 climate action report. However, it noted the carbon intensity of its investment and financing portfolios fell 29 per cent in the same period.